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ClickZ reports about a new study by Marketing Sherpa that is truly impressive. Pay-Per-Click (PPC), Search Engine Optimization (SEO) and Pay-Per-Call are showing dramatic rises in usage and effectiveness. This was a large study with 3,271 marketers responding.
As the study indicated, SEO spending increased 177 percent over the last 12 months. The story reports that among both B2B and B2C marketers, there were impressive gains in effectiveness for SEO, PPC and Pay-Per Call campaigns. Pay-Per-Call had the largest 12-month gain with 43 percent of marketers rating their campaigns as “very effective.”
Other items of note:
Online retail sales will double in the next five years according to a new report by Forrester Research. The full story is here on CNET. There have been a number of recent reports and articles that have highlighted the tremendous growth of e-business in the B2B sector, but this study focuses specifically on the online retail sector.
The annual average growth rate for online retail sales is expected to be 14 percent per year with total online sales reaching nearly $330 billion by 2010. Some sectors will see even faster growth including: health and beauty products, small appliances and travel.
According to the study underwritten by Harte-Hanks, Inc., and conducted by CSO Insights, one in five companies is now spending almost 50 percent of its marketing budget on “target marketing” methods. In addition, another two in five companies are spending between 15 to 45 percent on these same types of activities. According to the study, interactive marketing that is closely integrated with company database management is the leading, and fastest growing, segment in this target marketing category.
Most people are familiar with the ubiquity of computers in the work and home environment as tools for productivity or as rich information appliances. However, a recent BURST! study that surveyed 13,000 people, 14 years of age and older, demonstrated the computer’s growing role as a key entertainment appliance also. According to the press release from BURST!, “Entertainment that used to be accessed on separate appliances is increasingly being played on the computer.” Here are some numbers from the study in the younger demographic groups (under 24 years of age):
Greg Ness Posted in: Online Marketing
The trend to Web-centric marketing seems to be continuing unabated. This recent article points out that Ford Motor “will spend 30 percent of its $1 billion-plus marketing budget this year on ‘targeted’ media.” This targeted category includes Internet marketing, CRM, video on demand, mobile-phone ads, email, sponsorships and direct mail. Online advertising alone will get 15 percent of the budget.
In other news, Nielsen/NetRatings reported that in just one month (July) the total number of online searches increased nearly three percent over the June figures. Total searches for July were 4.454 billion. Many analysts had expected search figures to drop in the heart of the summer season, but this was certainly not the case.
Things are heating up even more for online retail sales. According to the U.S. Census Bureau, online retail was up 26 percent in the second quarter of this year compared with the same quarter in 2004. The story also points out that total online sales for the second quarter were nearly $1 trillion dollars!
Ron Lee Posted in: ROI
I remember when ROI was “easy.” Finish your project on deadline, come in under budget, win an award, and if the company president liked it (or his photo), then you had great “ROI.” Well, the times have changed and now you’re wondering how to really prove ROI, let alone even define it. And the scary part is, we as marketing types better figure out the ROI deal, because when there is a downturn in business, what tends to get scrutinized first? The marketing budget. Why? No quantifiable ROI, at least in the eyes of the finance department.
It’s apparent what companies are expecting from their marketing efforts when you look at the attributes/experience top headhunters are seeking to fill Chief Marketing Officer (CMO) positions.
I saw this article in Marketing Sherpa recently and it quickly made its way into many other marketing blogs and relevant Web sites (118 links at the last check). A quick diffusion rate like this usually indicates a great deal of interest in the content. To summarize the article, here’s what CMO headhunters want in a candidate:
What would all marketers like to have? For one thing, they would like to have their customers’ or prospects’ undivided attention. However, that seems to be a tall order these days. According to a new Simultaneous Media Usage Study, highlighted by the Center for Media Research, getting someone’s undivided attention is difficult.
The study, conducted by BIGresearch, polled over 12,000 random respondents that were representative of the Census 2000 population. It clearly shows that most people multitask when “consuming” media. In fact, 70 percent of 25-34 year olds say they simultaneously access one or more media on a regular or occasional basis. The 55+ age group multitasks the least, but even 60 percent of that group says they simultaneously use two or more media on a regular or occasional basis.
Pay Per Call is one of those things that just seems ready to burst on the online marketing scene in a major way.
What I found really interesting in a recent Pay Per Call report summary from the Kelsey Group, was the author’s comment, “[Pay per] calls potentially also help ‘close the loop’ between online shopping and offline buying — the dominant transaction model into the foreseeable future.” We all know that people often shop and research online, but still buy locally. Pay Per Call is a way to convert a company’s national online marketing presence into directly trackable local Cost Per Lead actions. It is a way of harnessing the power of the Web and the power of the local Yellow Pages.
Greg Ness Posted in: Online Marketing
The other day I was wandering through Marshall Field’s and I had the distinct feeling I was being watched. I looked around, but no one was in sight. No one, that is, except a mannequin who was staring at me obliquely with a cold, vacant look. He was well dressed, polite (in a quiet, Minnesota-nice kinda way) and he had a head. You know it’s really difficult to find a mannequin with a head these days. Look around. Most new mannequins are headless. Must be the current mannequin chic.
“Hey man, how you doin’?” I asked.*